Performance Overview. [2023] Revenue of $72.25 billion (+79.5% YoY); Net Profit to Mother of $9.44 billion (+162.7% YoY). [23Q4] Revenue of 25.84 billion yuan (+43.3% YoY, +45.2% YoY); net profit to mother of 2.22 billion yuan (+44.6% YoY, -22.7% YoY). [24Q1] Revenue of 12.61 billion yuan (YoY +0.3%); net profit to mother of 210 billion yuan (+39.0% YoY).
Performance split. 2023 (1) Inverters: Revenue of 27.65 billion yuan (+61.0% YoY), gross profit margin 37.9% (YoY +5.5%); (2) EPC: Revenue of 24.73 billion yuan (YoY +113.2%), gross profit margin 16.36% (YoY + 4.60%); (3) Energy storage systems: Revenue of 17.08 billion yuan (+75.8% YoY), gross profit margin 37.5% (YoY + 14.2%). Domestic/foreign revenue was 388.8 billion yuan, gross profit margin 20.7%/41.57%, and overseas revenue accounted for 46.2%.
The profitability of inverters has improved significantly, and years of intensive cultivation have built a strong brand barrier. In 2023, the company's PV inverter gross profit margin was 37.9%, up 5.5 pct year on year. In 2023, the company's global PV inverter delivery volume was 130 GW leading the world. The company's brand awareness and reputation continued to increase, increasing the layout of the European, American, Australian and Chinese channel markets, 490+ global service outlets, and rapid channel business development.
Large storage platforms are upgraded, and overseas growth is expected to maintain high growth in the next few years. In 2023, energy storage shipped 10.5 GWh (+36% year over year), with the highest shipping volume for eight consecutive years, with a gross profit margin of 37.5%, an increase of 14.2pct over the previous year. In 2023, the company launched the “three-electric fusion” PowerTitan 2.0 liquid-cooled energy storage system for large-scale overseas ground application scenarios. Currently, the company's energy storage systems are widely used in mature power markets such as the US, UK, Germany, etc., and continuously strengthen the deep integration of wind and solar storage, providing overall solutions for many projects around the world.
The profitability of the EPC business has increased significantly, and hydrogen energy and wind power projects are progressing normally. In 2023, the gross profit margin of the company's new energy investment and development business was 16.4%, an increase of 4.6 pct over the previous year. Sunshine New Energy, a holding subsidiary of the company, continues to increase technology research and development. By the end of 2023, its business covered 30 provinces, autonomous regions and municipalities directly under the Central Government. In 2023, 32 GW of wind power converters were shipped globally, with the largest market share in the world, up 40% year on year, and 4.6GW of offshore wind power converters, up 190% year on year. Sunshine Hydrogen Energy won the domestic bid and contract market share the second highest in the country, released flexible hydrogen production system solutions, and continued to lead the progress of products and technology.
Profit forecasting and valuation. We predict that the company's net profit for 2024-2025 will be 10.7.7/13.02 billion yuan. We believe that through years of intensive cultivation, the company has formed significant brand power and channel power barriers, and that its leading position in the industry is stable. The company's 2024 PE valuation is 18-19 times, and the corresponding reasonable value range is 130.5-137.75 yuan, giving it a “superior to the market” rating.
Risk warning. Industry policy changes, competition intensified, product prices fluctuated, and the PV industry's installed capacity fell short of expectations.